United Kingdom · Company filings
How National Grid sold Britain's electricity system operator for £673 million
Britain's electricity system operator left National Grid on 1 October 2024 and became part of the publicly owned National Energy System Operator. National Grid reported £673 million in total consideration after an earlier £630 million enterprise value announcement.
Sources checked
- April 2022Independent operator decision
Government and Ofgem agree to proceed Source 1
- October 2023Enabling legislation passed
Energy Act provides the framework for separation Source 2
- 13 September 2024Designation decision published
Electricity licence conversion and a new gas planning licence Source 3
- 13 September 2024Initial enterprise value announced
£630 million, subject to completion adjustments Source 4
- 1 October 2024Disposal completes and NESO starts
National Grid system operator moves into public ownership Source 2
- 2024/25 annual resultsTotal consideration and gain reported
£673 million consideration and £187 million disposal gain Source 2
Licence changes, completion and the accounting of proceeds were distinct events.
What the government bought
The acquisition removed the electricity system operator from National Grid. The designation converted its transmission licence into an electricity system operator licence and added a gas system planning licence. The government used the Energy Act framework to set the new body's roles. Source 3 Source 1
The initial valuation allowed for adjustments
The September announcement specified a £630 million enterprise value subject to customary adjustments. National Grid's full-year results recorded £673 million total consideration, including £45 million in completion adjustments received after 31 March 2025. Source 4 Source 2
Cash and profit followed separate accounting lines
National Grid reported £577 million cash proceeds net of cash and cash equivalents disposed. It recorded a £187 million disposal gain after derecognising net assets of £486 million against the £673 million total consideration. The three amounts answer different financial questions. Source 2
Why the separation had running costs
Ofgem said the old operator had contributed towards shared National Grid services including IT, finance and human resources. When the business left, those contributions ended. Ofgem's consequential costs decision addressed this effect separately from the sale price and licensing steps. Source 1 Source 3